RBC AAA CLO CAD Hedged ETF

RBC AAA CLO (CAD Hedged) ETF is a fixed income exchange-traded fund designed to provide investors with a high level of current income while preserving capital. The ETF primarily invests in a diversified portfolio of high-quality, AAA-rated collateralized loan obligation (CLO) debt tranches, predominantly issued by U.S. issuers, with some exposure to European CLOs. It is actively managed by the BlueBay Fixed Income Global CLO & Securitized Credit team, which leverages extensive expertise in securitized credit markets to focus on capital preservation, alpha generation, and risk management. The ETF employs a currency hedging strategy to minimize exposure to fluctuations between foreign currencies and the Canadian dollar. By offering access to the CLO market—historically available mainly to institutional investors—through an ETF structure, it provides Canadian investors with transparency, diversification, and liquidity benefits. This ETF plays a significant role in the fixed income sector by giving investors exposure to a niche asset class known for higher yields, lower volatility, and enhanced portfolio diversification compared to traditional fixed income investments.